HomeEast AfricaRandgold withdraws from Miyabi project

Randgold withdraws from Miyabi project

An African Eagle
drilling team at
work at the Miyabi gold
project in Tanzania
London, England — MININGREVIEW.COM — 04 August 2008 – African Eagle Resources plc – a UK-based and AIM-listed mineral resources company exploring for and developing copper and gold deposits in eastern and central Africa – says its partner Randgold Resources has withdrawn from their joint venture in the Miyabi gold project in Tanzania.

Making this announcement here, African Eagle managing director Mark Parker said: “Randgold has indicated that this decision is part of its intention to focus its exploration efforts on West Africa. Now that African Eagle has regained full control and ownership of the project, we will resume work building on the existing gold resources, using the extensive results of the regional exploration, geological drilling and structural modelling generated by Randgold’s team over the past 15 months, together with the gold mineralised targets identified from our own exploration,” he added.

“Randgold’s exploration at Miyabi was directed principally at testing their conceptual deposit model and was not intended to increase the existing 0.5Moz resource in the Miyabi gold corridor,” Parker explained. “This will now be our focus, as African Eagle’s geologists remain convinced that there is good potential for a deposit of 1Moz or more at Miyabi,” he insisted.

Parker went on to reveal that African Eagle would now consider new partners for Miyabi, and would follow up a number of approaches which it had been unable to pursue before now.

The Miyabi project area contains a major shear zone gold system which forms a 7km x 2km gold-bearing corridor. Although only part of the system has been drilled to date, African Eagle has been able to define a JORC-standard resource of 520 000oz of gold. Metallurgical tests have shown that the gold can readily be extracted by conventional leaching. The company holds licences covering more than 500km² surrounding the main corridor, and has defined numerous other targets from regional exploration.